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Feasibility Study for a New Software Project Your CEO has asked you as a systems analyst to conduct a feasibility study for a new software

Feasibility Study for a New Software Project Your CEO has asked you as a systems analyst to conduct a feasibility study for a new software project that will help reduce costs, reduce errors, improve overall flexibility, provide an ease of interacting with business partners, increase the speed of transaction activity, and improve overall management planning control. You have received the following data regarding the tangible benefits and associated costs for this proposed project:

Total Tangible Benefits = $60,000

Total One Time Cost = $30,000

Total Recurring Cost = $25,000

Step 1: You are to conduct an economic benefit review by performing a cost-benefit analysis by calculating the

Net Present Value (NPV),

Return on Investment (ROI), and

Break-Even Point (BEP).

The company wants to consider the time value of money when performing these calculations. The discount rate utilized for investments is 12 percent.

You will utilize the Cost Benefit Analysis Template in MS Excel to complete these calculations. Please save your work on this Excel file.

image text in transcribed

image text in transcribed 1. Find the last year row 30 is negative; go up the column to the year listed in row 6 . Write down that result as the whole year. Then do Steps 2 and 3 below to calculate fraction to add to the whole year value. 0 2. First year row 30 is positive, take row 29 , and subract row 30 in same column, and then divide the result by the row 29 value/row 29. \begin{tabular}{|l|l|l|l|} \hline \\ 3. ADD Step 1 (full year value) with Step 2 (fractional year value) = \\ \hline \end{tabular}

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